China Inner Mongolia Yili International Group (Yili) has invested US$50 million in China Huishan Dairy Holdings (Huishan) just prior to Huishan’s US$1.3 billion Hong Kong initial public offering (IPO). Huishan has secured two other major investors for the IPO – Norges Bank of Norway and the private equity arm of the Chinese state-owned food giant COFCO Group. Yili has stated that the investment in Huishan will ensure raw milk supply to the northeastern region. Huishan has 50 self-operating ranches with over 110,000 cows and is the second largest producer of raw milk in China with a 1% market share after Modern Dairy’s 1.3% share.
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